Posted on 07/02/2022 7:41:49 PM PDT by Libloather
As credit card debt in the United States continues to swell amid unbridled inflation, average annual percentage rates for new credit cards are hitting record highs.
“Credit card interest rates are basically the highest they’ve ever been. I’ve been watching credit card rates on a monthly basis for more than a decade now. And it’s the highest that they’ve been since I’ve been tracking them," Matt Schulz, the chief credit analyst for LendingTree, told Yahoo Finance.
The average interest rate for credit cards was 20.17%, according to an analysis in June by LendingTree, an internet lending marketplace. June marked the first time the average rate eclipsed 20% since the survey began in 2018, according to the company. The survey reviewed over 200 popular credit cards.
The uptick in credit card interest rates coincides with high levels of credit card debt. Recent data from the Federal Reserve found that credit card balances in the U.S. reached $841 billion during the first quarter of 2022, according to CNBC. While lower than record-high levels of $930 billion set in 2019, the recent trend has been upward.
"The troubling truth is that we’re nowhere near where the top is going to be," Schulz added, per the outlet.
(Excerpt) Read more at washingtonexaminer.com ...
Neither do I but I had issues with cc companies posting payments late years ago. Pissed me off. It’s good not to keep a balance on them. Especially at 25-29%. My goodness. What a scam.
I have no clue what ours are. We pay the whole balance every month. They’re not making any money on us. I hate credit cards, but it’s difficult to live in this world without any.
What’s the big deal? Pay the full balance each month, and the interest is zero.
Because people pay them in full every month and just get the points
I dont have any credit cards.
MBNA Joe is from Delaware.
Who is actually surprised by this?
We used to never carry a balance. Last year we were told if we continued that route, it would impact our score, in a negative way.
While I understand the outrage over CC interest rates, it must be remembered that a CC is an unsecured loan with no fixed payback.
When a person makes a purchase of a day to day expense on a CC and doesn’t pay it off in the billing cycle, they are essentially borrowing money to pay daily operating costs (that’s the fiscal lunacy of government). Groceries, gas, clothing, ammunition (ha ha) are what should be out of pocket spending and thus paid when the bill is received.
If a person needs or desires something that requires financing, they should get a conventional loan. CC are for convenience spending, not financing.
A number of years ago I had an unexpected expense when we were traveling. I preferred to spread it over 6 months. When we got home I took a 6 month savings secured loan at the credit union, paid the card with no interest and the interest on the CU loan was literally peanuts. A savings secured loan is generally 1.5 to 2% above the interest you are being paid on the savings used for collateral. I paid a net $19 for financing $1900 over 6 months that way. Credit unions usually offer better terms than banks for that type of loan.
Credit cards are a horrible way to borrow money.
“ They’re not making any money on us”
They make money every time you use it for a purchase 🤪
“ We used to never carry a balance. Last year we were told if we continued that route, it would impact our score, in a negative way.”
If that were true I wouldn’t be 820+ 🤪
Haven’t carried a balance for 20 years but I use them a lot especially online purchases. The main thing is using them at least some even if to7 pay off the balances. If you never use it at all they might drop you for inactivity and that won’t help your score.
Will Cash Call and Western Sky signature loans reappear? Those had 99.25-250.00 APY interest rates.
You’re better than me. I have cc’s, do pay them in full every month, but feel dirty when I use them. It does feel good to pay cash if for no other reason than knowing woke MasterCard or Visa isn’t getting that 2.8% transaction fee (or whatever it is nowadays). I always use bitcoin online when available too.
Anyone who pays interest on a credit card shouldn’t have one.
But for those of use who always pay in full on time they lower the cost of everything by 2 to 5 %.
Ditto that
Revenge for all the interest I paid in the past.
My main card just raised my rate from 7.49 to 8.49
You may need to call your card company and ask for some free lube packets, or something
Amex must be worried about your total (all sources) debt.
Sounds like they are "encouraging" you to pay down your Amex balance first!
I just checked my Visa card rate - a modest 13.74%. I am almost embarrassed.
Since I pay my whole balance every month, they are probably trying to lure me in.
On average, the major cards clear close to 2% on each transaction.
The business owner pays that fee.
In exchange for that 2% fee, the credit card company assumes 100% of the risk that the card holder might default.
The USA takes friction free commerce for granted.
There are a lot of expenses that are out of sight.
That's the thing the complainers are forgetting - nobody is being forced to pay that rate.
Let the CC companies charge what they want, and if nobody carries a balance, they would be forced to lower the rate - don't like the rate, get another card or don't carry a balance (only buy what you can afford to pay for).
Of course they make a small percentage on purchases. The subject was the interest rates. I guess I should’ve been more specific.
Also, we make an effort to pay cash most of the time, especially in restaurants. We’re uncomfortable when a card is separated from us.
Probably raised to help pay for those who default on their cards. I can imagine there will be lot more of that in the near future.
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